May 24, 2024
We are excited to share a crucial update regarding the Qualifying Advanced Energy Project Tax Credit (48C) program. Here are some key dates and information you need to know:
Key Dates
- Wednesday, May 22, 2024: The DOE 48C Portal opened for concept paper submissions at 9 AM EST.
- Friday, June 21, 2024: Deadline for 48C concept paper submissions at 5 PM EST.
Important Information:
- The U.S. Department of Energy has opened the 48C Portal for the submission of concept papers, following the U.S. Department of the Treasury and the IRS's recent announcement regarding the second round of allocations for the 48C program.
- This second round significantly increases the funding, with up to $6 billion available, including approximately $2.5 billion earmarked for projects in designated 48C energy communities.
- Round 1 saw overwhelming interest, with nearly $42 billion in tax credit requests. In the next step, applicants sought $13.5 billion in tax credits, well above the $4 billion available.
Categories & Qualifying Projects:
- As with the first round, there are three categories of qualifying projects: Clean Energy Manufacturing and Recycling, Industrial Decarbonization (formerly named GHG emissions reduction projects), and Critical Materials projects.
- It appears that aluminum extruders may be eligible to apply for the 48C tax credit under the Clean Energy Manufacturing and Recycling Projects category. Specifically, the DOE expanded the list of priority areas under this category to include low-carbon aluminum.
- Eligible projects include "projects that expand, re-equip, or establish facilities of the manufacturing or recycling" of several products, including "low carbon aluminum." The guidance describes low carbon materials as those that "have a substantially lower carbon intensity when compared to an appropriate industry-specific benchmark."
- To the extent that extruders produce low-carbon aluminum and are expanding, re-equipping, or establishing facilities that manufacture or recycle low-carbon aluminum, they may qualify for this credit.
Encouragement for Previous Applicants:
- Taxpayers who submitted concept papers or applications in Round 1 are strongly encouraged to submit again for Round 2 to take advantage of this expanded funding opportunity.
Resources:
- Access the 48C Portal
- Find 48C FAQs (as of April 29, 2024)
- 48C Concept Paper Datasheet
- Learn more about the 48C program by reading Treasury's latest blog: Anchoring Clean Energy Manufacturing Investments in Coal Country and Beyond.
Application Process/Deadlines
- If anyone is interested in pursuing this opportunity, applicants first submit short concept paper (no more than 5 pages), which are due 30 days after the DOE's concept paper portal opens.
- DOE will review concept papers and issue letters encouraging or discouraging companies to submit complete applications.
- Full applications will be due 50 days after DOE responds to an applicant's concept paper.
- DOE will announce its final Round 2 allocations by Jan. 15, 2025.
